In the first half of financial year 2005 Deutsche EuroShop realised an EBIT of 28.4 million (prior-year period: 24.3 million). The profit for the period increased by 8 % - currency-adjusted by 30% - to 9.0 million compared to the first six months of financial year 2004 (8.3 million).
Revenue up 14%
Revenue rose by 14% from 30.7 million in the first half of 2004 to 35.2 million in the period under review. Adjusted for the revenue contributions from the newly opened centers and the Italian shopping center sold in July 2004, revenue was up 1%.
Slight decline in expenses
Whilst other operating income (0.9 million) was down 0.7 million on the first half of 2004 (1.6 million), other operating expenses dropped by 0.3 million to 7.3 million.
17% rise in EBIT
Earnings before interest and taxes (EBIT) rose by 4.1 million from 24.3 million to 28.4 million (+17%). In currency-adjusted terms, earnings were up 5.5 million (+24%).
Net interest expense impacts net finance costs
Net interest expense deteriorated by 3.1 million compared with the first half of the previous year to 15.5 million. This was primarily due to higher interest expenses for the newly opened properties. In contrast, income from investments improved to 2.4 million. Measurement gains and losses, i.e. income and expense from the measurement of financial instruments and properties, only include the investment expenses incurred in relation to operational shopping centers during the period under review. In the first half of 2004, the expense was 1.2 million higher than the period under review (0.3 million), due to the cost of expansion measures in the Rhein- Neckar-Zentrum, which must be recognised as expenses under IFRS. All in all the net finance costs amounted to -13.9 million, an increase of 1.7 compared to the first six months of 2004.
Consolidated profit for the period rises 8%
Profit from ordinary activities (EBT) was up 2.4 million year on year at 14.5 million. After the deduction of taxes and minority interest in earnings, profit for the period amounted to 9.0 million or 0.58 per share. This was up 0.7 million or 8% on the first half of 2004. In currency-adjusted terms, earnings rose by 30%.
Outlook
The results for the first six months of 2005 are in line with the forecast for the full year. It is still the plan to lift revenue to 68-72 million in 2005. Currency-adjusted earnings before interest and taxes (EBIT) are slated to increase to 53-56 million. Currency adjusted earnings before taxes (EBT) are expected to reach 28-30 million, excluding measurement gains and losses.
Source: Deutsche EuroShop
